When Will Social Security and Medicare Funds Run Out?

According to the Social Security trustee report released in June:

·        The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled Social Security benefits until the fourth quarter of 2032, one quarter earlier than projected last year. At that time, the fund’s reserves will become depleted and continuing program income will be sufficient to pay 78 percent of total scheduled benefits.

·        The Hospital Insurance (HI) Trust Fund will be able to pay 100 percent of total scheduled Medicare Part A benefits (i.e. hospital) until the second quarter of 2033, one quarter earlier than projected last year. At that point, that fund’s reserves will become depleted and continuing program income will be sufficient to pay 89 percent of total scheduled benefits.

·         The Supplementary Medical Insurance (SMI) Trust Fund is adequately financed into the indefinite future because, unlike the other trust funds, its main financing sources—enrolled beneficiary premiums and the associated federal contributions from the Treasury—are automatically adjusted each year to cover costs for the upcoming year. SMI is used to finance Medicare Part B (outpatient/physician services) and Medicare Part D (prescription drugs).